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Design for Default: How to Optimize Your Daily Decisions

Design for Default: How to Optimize Your Daily Decisions

You might assume that humans buy products because of what they are, but the truth is that we often buy things because of where they are. For example, items on store shelves that are at eye level tend to be purchased more than items on less visible shelves.

In the best-selling book Nudge (Kindle | Audiobook), authors Richard Thaler and Cass Sunstein explain a variety of ways that our everyday decisions are shaped by the world around us. The effect that eye-level shelves have on our purchase habits is just one example.

Here’s another: The ends of aisles are money-making machines for retailers. According to data cited by the New York Times, 45 percent of Coca-Cola sales come specifically from end-of-the-aisle racks.

Here’s why this is important: Something has to go on the shelf at eye level. Something has to be placed on the rack at the end of the aisle. Something must be the default choice. Something must be the option with the most visibility and prominence. This is true not just in stores, but in nearly every area of our lives. There are default choices in your office and in your car, in your kitchen and in your living room.

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My argument is this: If you optimize the default decisions in your life, rather than accepting whatever is handed to you, then it will be easier to live a better life. Let’s talk about how to do that right now.

Design for Default

Although most of us have the freedom to make a wide range of choices at any given moment, we often make decisions based on the environment we find ourselves in.

For example, if I wanted to do so, I could drink a beer as I write this article. However, I am currently sitting at my desk with a glass of water next to me. There are no beers in sight. Although I possess the capability to get up, walk to my car, drive to the store, and buy a beer, I probably won’t because I surrounded by easier alternatives – namely, drinking water. In this case, taking a sip of water is the default decision, the easy decision.

Consider how your default decisions are designed throughout your personal and professional life. For example:

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  • If you sleep with your phone next to your bed, then checking social media and email as soon as you wake up is likely to be the default decision.
  • If you walk into your living room and your couches and chairs all face the television, then watching television is likely to be the default decision.
  • If you keep alcohol in your kitchen, then drinking consistently is more likely to be the default decision.

Of course, defaults can be positive as well.

  • If you keep a dumbbell next to your desk at work, then pumping out some quick curls is more likely to be the default decision.
  • If you keep a water bottle with you throughout the day, then drinking water rather than soda is more likely to be the default decision.
  • If you place floss in a visible location (like next to your toothbrush), then flossing is more likely to be the default decision.

Researchers have referred to the impact that environmental defaults can have on our decision making as choice architecture. It is important to realize that you can be the architect of your choices. You can design for default.

How to Optimize Your Default Decisions

Here are a few strategies I have found useful when trying to design better default decisions into my life:

Simplicity. It is hard to focus on the signal when you’re constantly surrounded by noise. It is more difficult to eat healthy when your kitchen is filled with junk food. It is more difficult to focus on reading a blog post when you have 10 tabs open in your browser. It is more difficult to accomplish your most important task when you fall into the myth of multitasking. When in doubt, eliminate options.

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Visual Cues. In the supermarket, placing items on shelves at eye level makes them more visual and more likely to be purchased. Outside of the supermarket, you can use visual cues like the Paper Clip Method or the Seinfeld Strategy to create an environment that visually nudges your actions in the right direction.

Opt-Out vs. Opt-In. There is a famous organ donation study that revealed how multiple European countries skyrocketed their organ donation rates: they required citizens to opt-out of donating rather than opt-in to donating. You can do something similar in your life by opting your future self into better habits ahead of time. For example, you could schedule your yoga session for next week while you are feeling motivated today. When your workout rolls around, you have to justify opting-out rather than motivating yourself to opt-in.

Designing for default comes down to a very simple premise: shift your environment so that the good behaviors are easier and the bad behaviors are harder.

Designed For You vs. Designed By You

Default choices are not inherently bad, but the entire world was not designed with your goals in mind. In fact, many companies have goals that directly compete with yours (a food company may want you to buy their bag of chips, while you want to lose weight). For this reason, you should be wary of accepting every default as if it is supposed to be the optimal choice.

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I have found more success by living a life that I design rather than accepting the standard one that has been handed to me. Question everything. You need to alter, tweak, and shift your environment until it matches what you want out of life. Yes, the world around you shapes your habits and choices, but there is something important to realize: someone had to shape that world in the first place. Now, that someone can be you.

This article was originally published on JamesClear.com.

Featured photo credit: Yohari Garcia Martnez via flickr.com

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James Clear

James Clear is the author of Atomic Habits. He shares self-improvement tips based on proven scientific research.

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Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

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Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

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It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

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Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

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    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

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    Featured photo credit: William Iven via unsplash.com

    Reference

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